Exagen Inc. Reports 14.2% Revenue Growth in Q2 2025, Despite Increased Net Loss

Exagen Inc. reported its financial results for the second quarter of 2025, revealing a revenue increase of 14.2% to $17.2 million compared to $15.1 million in the same period last year. For the first half of 2025, revenue reached $32.7 million, up from $29.5 million in the prior year, driven primarily by an increase in average selling prices (ASP) and a 7% rise in the number of AVISE® CTD tests delivered. Despite the revenue growth, the company recorded a net loss of $4.4 million for the quarter, compared to a loss of $3.0 million in Q2 2024, reflecting increased operating expenses and interest costs associated with its new debt facility.

The company’s total operating expenses for the second quarter rose to $13.0 million, up from $11.6 million a year earlier, largely due to higher selling, general, and administrative expenses, which increased by 10.3% to $11.5 million. Research and development expenses also saw a significant rise of 25.8%, totaling $1.5 million. The increase in costs is attributed to the expansion of the workforce and investments in new product development, including the launch of new biomarkers for the AVISE® CTD test.

In terms of strategic developments, Exagen successfully completed a public offering in May 2025, raising approximately $18.6 million from the sale of 3.9 million shares at $5.25 per share. Additionally, the company entered into a Credit Agreement with Perceptive Credit Holdings, securing a $25 million term loan, which will support its operational turnaround and growth strategy. The company has also issued warrants for the purchase of up to 1.15 million shares of common stock as part of this agreement.

Operationally, Exagen reported a significant increase in its customer base, with the number of AVISE® CTD tests delivered growing by approximately 7% year-over-year. The company continues to focus on expanding its market presence, with a specialized sales force covering 40 territories in the U.S. The company’s cash and cash equivalents stood at $30.0 million as of June 30, 2025, an increase from $22.0 million at the end of 2024, providing a solid liquidity position to support ongoing operations.

Looking ahead, Exagen anticipates continued revenue growth driven by the adoption of its new biomarkers and the expansion of its testing portfolio. The company is focused on achieving profitability while managing its operating expenses and enhancing its revenue cycle management practices. However, it acknowledges the potential need for additional funding to support its growth initiatives and operational needs in the future.